The name Al-Quds is an abbreviation for "The
Jewish Temple"

by Rabbi Joseph Katz

The Arabic name for Jerusalem is "el-KuDS"
which is abbreviation for another Arabic name used for Jerusalem until
the last century, "bet el-maKDeS". Under the Arab rule, in the 10th
century Jerusalem was always called "bet el maKDeS"

The name "BeT el-MaKDeS" is a translation
of the Aramaic and Hebrew "BeiT ha-MiKDaSH", which means Temple.
But Islam has no Temple, only the Jews did.

Thus the Arabic name for Jerusalem makes
no reference to Mohammed's trip to Heaven, but rather refers to the Jewish
Temple.